OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE CHENNAI II COMMISSIONERATE, M

OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE

CHENNAI II COMMISSIONERATE, M.H.U. COMPLEX, CHENNAI-35.

TRADE NOTICE NO. 23 / 2003. DATED : 06 -05-2003.

Subject : Central Excise- Storage of goods outside factory premises – Waiver of Merchant overtime charges – regarding.

Please refer to Board’s Circular No. 610/1/2002-CX dated 1.1.2002 wherein the facility of storage of non-duty paid goods outside the factory premises which was available under erstwhile rule 47(5) of Central Excise Rules, 1944 has also been granted under Central Excise (No.2) Rules, 2001 subject to adequate revenue safeguards.

It has been observed by the Board that even though the aforesaid circular does not envisage any physical supervision of such storage premises /godown by the Central Excise, the field formations are still collecting merchant overtime charges/ charges on cost recovery basis as per earlier concept of physical supervision of godowns/storage places in terms of Board’s Circular No. 261/33A/86-CX.8 dated 14.4.1986.

The matter has been examined. It is the view of the Board that in Current era of liberalisation and simplification of law and procedures, the emphasis is on self-assessment by the assessee. Therefore, the recovery of merchant overtime charges in such cases are no longer warranted. The Jurisdictional Commissioner shall, however, impose any other condition which he deems fit for the safeguard of revenue before granting permission for storage of non-duty paid excisable goods outside factory premises of the assessee.

The Circular No. 610/1/2002-CX dated 1.1.2002 and earlier instructions on this subject stand modified to the above extent.

The contents of this Trade Notice may please be brought to the

notice of all the constituent members of your Association and the manufacturers in particular.

(Authority: Board’s Circular No. 709/25/2003-CX, April 23, 2003 from File F.No.261/12/2/2003-CX8)

(Issued from File C.No. IV/16/217/2003 CX POLICY PF I)

-Sd-

(K.R.UDAY BHASKAR)

ADDITIONAL COMMISSIONER(TECH)

To,

The Trade and Department (As per mailing List)